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First we need to open a new document. Document can be in any size becouse we will cut the button out later.
Now we will create a new layer.in this created layer we need to select a rectangle with rectangular marquee tool.
With rectangular marquee tool we will select area in wich we will draw our button.
After selecting desired area we need to smooth the edges of our selection. In order to do that go to main menu and select Select -> Modify -> Smooth... We have now smooth selection menu opened. Adjust the sample radius to 5 pixels and click OK. Now our selection has smooth edges.
Next thing we will about to do is to choose a button background color. Now we will select Paint bucket tool and red colour (you can select the color you want) and we will paint our selection. Step 5.
In this step we will create a new layer. We have button background already selected (if the background is not selected hold Ctrl and click on button background layer) and we will click on layer that we just made. After that go to main menu and select Select -> Modify -> Contract . In the Contract Selection menu adjust Contract by value to 2 pixels and hit ok.
Now we have selection that is 2 pixels smaller than button background. Now select the marquee tool, hold Alt and cut the selection in half. Now our workspace should look like this:
Now select gradient tool and edit gradient. Adjust gradient pattern to background to transparent.
Pick a white colour and add gradient fill in the selected area drawing a line from top edge of selected area to the bottom edge. Now set the layer (layer with gradient) opacity to 90% and that's it. Now our button looks like this:
You can now add some text using text tool and voila!